es Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,500. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Record (in summary form) the $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) (If no entry is required fo transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1
es Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $2,500. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January. Required: 1. & 2. Record (in summary form) the $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of a gift card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) 3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Record (in summary form) the $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) (If no entry is required fo transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:es
Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift
cards in various amounts totaling $2,500. The cards are redeemable for meals within one year of the purchase date. Gift
cards totaling $728 were presented for redemption during the first three months of operation prior to year-end on
December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas
Roadhouse will remit sales taxes in January.
Required:
1. & 2. Record (in summary form) the $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record
each sale of a gift card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.)
3. Determine the balance in the Deferred Revenue account (remaining liability for gift cards) Texas Roadhouse will report on
the December 31 balance sheet.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Record (in summary form) the $2,500 in gift cards sold (keeping in mind that, in actuality, the company would record each sale of
card individually) and the $728 in gift cards redeemed. (Hint: The $728 includes a 4% sales tax of $28.) (If no entry is required fo
transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
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